Đang tải... (xem toàn văn)
Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Test Bank for Survey of Accounting 6th Free Test Bank for Fundamental Financial and Managerial Accounting Concepts Test Bank for International Accounting 4th Edition Free Test Bank for Financial Accounting Tools for Business Decision Making 6three Test Bank for Introduction to Financial Accounting 11th Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao Test Bank for Managerial Accounting with Answers Miễn phí Đề thi trắc nghiệm có đáp án, Test Bank for Management Accounting, Bank with Answers for Advanced Accounting, đề trắc nghiệm tài chính kế toán Free download Test bank with Answers for Finance Accounting, Managerial Accounting
70 Free Test Bank for Auditing and Assurance Services 5th Edition by Louwers Mutiple Choice Questions - Page To be proficient as an auditor, a person must firstbe able to accomplish which of these tasks in a decision-making process? A Identify audit evidence relevant to the verification of assertions management makes in its unaudited financial statements and notes B Formulate evidence-gathering procedures (audit plan) designed to obtain sufficient, competent evidence about assertions management makes in financial statements and notes C Recognize the financial assertions made in management's financial statements and footnotes D Evaluate the evidence produced by the performance of procedures and decide whether management's assertions conform to generally accepted accounting principles and reality Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the ASB balance assertion of A Completeness B Existence C Presentation D Valuation E Rights and obligations Which of the following is notincluded in The American Accounting Association (AAA) definition of auditing? A Potential conflict of interest B Systematic process C Assertions about economic actions D Established criteria The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations The auditor reviewed all work orders that were capitalized as part of the equipment costs Which of the following is the ASB transaction assertion most closely relatedto the auditor's testing? A Occurrence B Completeness C Accuracy 4 D Classification In order to be considered as external auditors with respect to government agencies, GAO auditors must be A Organizationally independent B Empowered as the accounting and auditing agency by the U.S Congress C Funded by the federal government D Guided by standards similar to GAAS The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions? A Existence B Rights and obligations C Completeness D Valuation The audit objective that all transactions are recorded in the proper account is related most closely to which one of the ASB transaction assertions? A Occurrence B Completeness C Accuracy D Classification The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations When looking at the ending balance for the fixed asset account, the auditor examined all work orders, purchased materials, labor cost reports, and applied overhead that were capitalized as part of the equipment costs Which of the following is the ASB balance assertion most closely related to the auditor's testing? A Existence B Completeness C Rights and obligations D Valuation The audit objective that all balances include all items that should be recorded in that account is related most closely to which one of the ASB balance assertions? A Existence B Rights and obligations C Completeness D Valuation Which of the following best describes assurance services? A Independent professional services that report on the client's financial statements B Independent professional services that improve the quality of information for decision makers C Independent professional services that report on specific written management assertions D Independent professional services that improve the client's operations In performing an attestation engagement, a CPA typically A Supplies litigation support services B Assesses control risk at a low level C Expresses a conclusion on an assertion about some type of subject matter D Provides management consulting advice Assurance services involve all of the following except A Relevance as well as the reliability of information B Nonfinancial information as well as traditional financial statements C Providing absolute rather than reasonable assurance D Electronic databases as well as printed reports Which of the following is nota recommendation usually made following the completion of an operational audit? A Economic and efficient use of resources B Effective achievement of business objectives C Attesting to the fairness of the financial statements D Compliance with company policies What is the term used to identify the risk that the client's financial statements may be materially false and misleading? A Business risk B Information risk C Client risk D Risk assessment The audit objective of presenting all transactions and accountsin the financial statements are in fact included is related to which of the PCAOB assertions? A Existence B Rights and obligations C Completeness D Valuation An attestation engagement is one in which a CPA is engaged to A Issue a report on subject matter or an assertion about the subject matter that is the responsibility of another party B Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed C Testify as an expert witness inaccounting, auditing, or taxmatters, given certain stipulated facts D Assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance Which of the following is the essential purpose of the audit function? A Detection of fraud B Examination of individual transactions to certify their validity C Determination of whether the client's financial statement assertions are fairly stated D Assurance of the consistent application of correct accounting procedures Which of the following is an underlying condition that in part creates the demand by users for reliable information? A Economic transactions are numerous and complex B Decisions are time sensitive C Users are separated from accounting records by distance and time D Financial decisions are important to investors and users E All of the above Which of the following is notan ASB assertion about inventory related to presentation and disclosure? A Inventory is properly classified as a current asset on the balance sheet B Inventory is properly stated at cost on the balance sheet C Major inventory categories and their valuation bases are adequately disclosed in notes D All of the above are ASB presentation and disclosure assertions about inventory Which of the following best describes the primary role and responsibility of the independent external auditor? A Produce a company's annual financial statements and notes B Express an opinion on the fairness of a company's annual financial statements and footnotes C Provide business consulting advice to audit clients D Obtain an understanding of the client's internal control structure and give management a report about control problems and deficiencies Which of the following is nota PCAOB assertion about inventory related to presentation and disclosure? A Inventory is properly classified as a current asset on the balance sheet B Inventory is properly stated at its cost on the balance sheet C Major inventory categories and their valuation bases are adequately disclosed in notes D All of the above are PCAOB presentation and disclosure assertions about inventory Cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about the PCAOB assertion of A Presentation B Completeness C Rights D Existence The audit objective that all the transactions and accounts presented in the financial statements represent realassets, liabilities, revenues, and expenses is related most closely to which of the PCAOB assertions? A Existence or occurrence B Rights and obligations C Completeness D Presentation and disclosure The audit objective that footnotes in the financial statements should be clear and expressed so that the information is easily conveyed to the readers of the financial statements is related most closely with which of the ASB presentation and disclosure assertions? A Occurrence B Rights and obligations C Comprehensibility D Understandability Which of the following best describes the main reason that independent auditors report on management's financial statements? A Management fraud may exist, and it is likely to be detected by independent auditors B The management that prepares the statements and the persons whouse the statements may have conflicting interests C Misstated account balances may be corrected as the result ofthe independent audit work D The management that prepares the statements may have a poorly designed system of internal control Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the PCAOB assertion of A Completeness B Existence C Presentation D Valuation E Rights and obligations Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should beplanned and performed with an attitude of A Objective judgment B Independent integrity C Professional skepticism D Impartial conservatism The underlying conditions that create demand by users for reliable information include all of the following except A Transactions are numerous and complex B Users lack professional skepticism C Users are separated from accounting records by distance and time D Financial decisions are important to investors and users E Decisions are time sensitive The audit objective that all transactions are recorded in the proper period is related most closely to which of the Audit Standards Board (ASB) transaction assertions? A Occurrence B Completeness C Cutoff D Accuracy The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of A Quality control B Generally accepted auditing standards, which include the concept of materiality C The auditor's evaluation of the audited company's internal control D The applicable financial reporting framework (i.e., GAAP in the United States) 70 Free Test Bank for Auditing and Assurance Services 5th Edition by Louwers Mutiple Choice Questions - Page The primary difference between operational auditing and financial auditing is that in operational auditing A The operational auditor is not concerned with whether the audited activity is generating information in compliance with financial accounting standards B The operational auditor is seeking to help management use resources in the most effective manner possible C The operational auditor starts with the financial statementsof an activity being audited and works backward to the basic processes involved in producing them D The operational auditor can use analytical skills and tools that are not necessary in financial auditing According to the AICPA, the purpose of an audit of financial statements is to A Enhance the degree of confidence that intended users can place in the financial statements B Express an opinion on the fairness with which they present financial position, results of operations, and cash flows in conformity with accounting standards promulgated by the Financial Accounting Standards Board C Express an opinion on the fairness with which they present financial position, result of operations, and cash flows in conformity with accounting standards promulgated by the U.S Securities and Exchange Commission D Obtain systematic and objective evidence about financial assertions and report the results to interested users When an auditor reviews additions to the equipment (fixed asset) account to make sure that repair and maintenance expenses are not understated, she wants to obtain evidence as to management's assertion regarding A Completeness B Existence C Valuation and allocation D Rights and obligations E Occurrence The Sarbanes-Oxley Act of 2002 generally prohibits professionalservice firms from A Acting in a managerial decision-making role for an audit client B Auditing the firm's own work on an audit client C Providing tax consulting to an audit client without audit committee approval 4 D All of the above Independent auditors of financial statements perform audits that reduce A Business risks faced by investors B Information risk faced by investors C Complexity of financial statements D Timeliness of financial statements The Sarbanes-Oxley Act of 2002 requires that the key company officials certify the financial statements Certificationmeans that the company CEO and CFO must sign a statement indicating A They have read the financial statements B They are not aware of any false or misleading statements (or any key omitted disclosures) C They believe that the financial statements present an accurate picture of the company's financial condition D All of the above Bankers who are processing loan applications from companies seeking large loans will probably askfor financial statements audited by an independent CPA because A Financial statements are too complex to analyze themselves B They are too far away from company headquarters to perform accounting and auditing themselves C The consequences of making a bad loan are very undesirable D They generally see a potential conflict of interest between company managers who want to get loans and the bank's needs for reliable financial statements Substantial equivalency refers to A An auditor's tendency not to believe management's assertions without sufficient corroboration B Providing consulting work for another firm's audit client in exchange for the other firm's providing consulting services to one of your clients C The waiving of certification exam parts for an individual holding an equivalent certification from another professional organization D Permitting a CPA to practice in another state without havingto obtain a license in that state The study of business operations for the purpose of making recommendations about the efficient use of resources, effective achievement of business objectives, and compliance with company policies is referred to as A Environmental auditing 2 B Financial auditing C Compliance auditing D Operational auditing It is always a good idea for auditors to begin an audit with the professional skepticism characterized by the assumption that A A potential conflict of interest always exists between the auditor and the management of the enterprise under audit B In audits of financial statements, the auditor acts exclusivelyin the capacity of an auditor C The professional status of the independent auditor imposes commensurate professional obligations D Financial statements and financial data are verifiable The ASB transaction objective that requires the auditor to establish evidence that all transactions and accounts that should be presented in the financial statements are included is? A Completeness B Existence or occurrence C Rights and obligations D Valuation or allocation The risk that an entity will failto meet its objectives is referred to as A Business risk B Information risk C Assurance risk D Audit risk Which of the following is not an underlying condition that creates demand by users for reliable financial information? A Remoteness B Vagueness C Consequences D Complexity A determination of cost savings obtained by outsourcing cafeteria services is most likely to be an objective of A Environmental auditing B Financial auditing C Compliance auditing D Operational auditing The accounting, auditing, and investigating agency of the U.S Congress that is headed by the U.S Comptroller General is known as A The Federal Bureau of Investigation (FBI) B The U.S General Accountability Office (GAO) C The Internal Revenue Service (IRS) D The United States Legislative Auditors (USLA) Performance audits usually include A Financial audits B Economy and efficiency audits C Compliance audits D Program audits The four basic requirements for becoming a CPA in most states relate to A Education, the CPA Examination, experience, and substantial equivalency B The CPA Examination, experience, continuing professional education, and a state certificate C Continuing professional education, the CPA Examination, experience, and an AICPA certificate D Education, the CPA Examination, experience, and a state certificate Which of the following would be considered an assurance engagement? A Giving an opinion on a prize promoter's claims about the amountof sweepstakes prizes awarded in the past B Giving an opinion on the conformity of the financial statementsof a university with generally accepted accounting principles C Giving an opinion on the fair presentation of a newspaper's circulation data D Giving assurance about the average drive length achieved by golfers with a client's golf balls E All of the above Which of the following best describes the relationship between auditing and attestation engagements? A Auditing is a subset of attestation engagements that focuses onthe certification of financial statements B Attestation is a subset of auditing that provides lower assurance than that provided by an audit engagement C Auditing is a subset of attestation engagements that focuseson providing clients with advice and decision support D Attestation is a subset of auditing that improves the quality ofinformation, or its context, for decision makers Which of the following is not a major element of assurance services? A Independence B Improving the quality of information 3 C Improving profitability of the client D Improving the context of information The Sarbanes-Oxley Act of 2002 prohibits public accounting firms from providing which of the following services to an audit client? A Bookkeeping services B Internal audit services C Valuation services D All of the above When auditing merchandise inventory at year-end, the auditor performs audit procedures to ensure that all goods purchased before year-end are received before the physical inventory count This audit procedure provides assurance about which management assertion? A Cutoff B Existence C Valuation and allocation D Rights and obligations E Occurrence What requirements are usuallynecessary to become licensed as a certified public accountant? A Successful completion of the Uniform CPA Examination B Experience in the accounting field C Education D All of the above Which of the following is an example of a regulatory auditor? A Internal auditors B Big auditors C U.S Internal Revenue Service auditors D Operational auditors The objective in an auditor's review of credit ratings of a client's customers is to obtain evidence related to management's financial statement assertion about A Completeness B Existence C Valuation and allocation D Rights and obligations E Occurrence In an attestation engagement, a CPA practitioner is engaged to A Compile a company's financial forecast based on management's assumptions without expressing any form of assurance B Prepare a written report containing a conclusion about the reliability of a management assertion C Prepare a tax return using information the CPA has not audited or reviewed D Give expert testimony in court on particular facts in a corporate income tax controversy Which of the following is not a role of the AICPA? A Refine the body of professional knowledge, regulate membership admissions, and police conduct of members B Prepare and grade the uniform CPA examination C License the practices of CPAs in the various states D Issue public statements on practice standards The goal of operational auditing is to A Help managers discharge their management responsibilities and improve profitability B Evaluate compliance with specific laws and regulations C Reduce to a socially acceptable level the information risk to users of financial statements D Express an opinion on the fairness of financial statements When auditing merchandise inventory at year-end, the auditor performs audit procedures to obtain evidence that no goods held on consignmentare included in the client's ending inventory balance This audit procedure provides assurance about which management assertion? A Completeness B Existence C Valuation and allocation D Rights and obligations E Occurrence The process by which a CPA obtains a certificate and license ina state other than the state in which the CPA's certificate was originally obtained is referred to as A Substantial equivalency B Quid pro quo C Relicensing D Re-examination Jones, CPA, is planning the audit of Rhonda's Company Rhonda verbally asserts to Jones that all expenses for the year have been recorded in the accounts Rhonda's representation in this regard A Is sufficient evidence for Jones to conclude that the completeness assertion is supported for expenses B Can enable Jones to minimize the work on the gathering of evidence to support Rhonda's completeness assertion C Should be disregarded because it is not in writing D Is not considered a sufficient basis for Jones to conclude that all expenses have been recorded The organization primarily responsible for ensuring that publicofficials are using public funds efficiently, economically, and effectively is the A Governmental Internal Audit Agency (GIAA) B Central internal auditors (CIA) C Securities and Exchange Commission (SEC) D Government Accountability Office (GAO) CPA certificates and licenses to practice are issued by the A AICPA B States or territories C AICPA Examinations Division D GAO The definition of performance audits does not include A Economy audits B Efficiency audits C Financial audits D Program audits According to the American Accounting Association (AAA), the definition of auditing includes the following statement A An independent appraisal function established within an organization to examine and evaluate its activities B A process of reducing to a socially acceptable level the information risk to users of financial statements C An expression of opinion on the fairness of financial statements D A systematic process of objectively obtaining and evaluatingevidence regarding assertions about economic actions and events The PCAOB assertions made by management in financial statementsdo not include A Existence B Compliance C Completeness D Presentation Which of the following is a reason to obtain professional certification? A Certification provides credibility that an individual is technically competent B Certification often is a necessary condition for advancement and promotion within a professional services firm C Obtaining certification is often monetarily rewarded by an individual's employer D All of the above The risk to investors that a company's financial statements maybe materially misleading is called A Client acceptance risk B Information risk C Moral hazard D Business risk The probability that the information circulated by a company will be false or misleading is referred to as A Business risk B Information risk C Assurance risk D Audit risk The primary objective of compliance auditing is to A Give an opinion on financial statements B Develop a basis for a report on internal control C Perform a study of effective and efficient use of resources D Determine whether auditee personnel are following laws, rules, regulations, and policies ... States) 70 Free Test Bank for Auditing and Assurance Services 5th Edition by Louwers Mutiple Choice Questions - Page The primary difference between operational auditing and financial auditing. .. between auditing and attestation engagements? A Auditing is a subset of attestation engagements that focuses onthe certification of financial statements B Attestation is a subset of auditing. .. following services to an audit client? A Bookkeeping services B Internal audit services C Valuation services D All of the above When auditing merchandise inventory at year-end, the auditor performs